Tracking
progress
Towards a
low carbon
economy
1. naTional
progress reporT
overview of national progress in reducing emissions across
the australian economy
About us
Five years ago, The myer Foundation and monash University realised that australia needed a new approach to drive action on climate change. one that understood the interests of business, government and investors and was trusted to be an independent, credible adivsor in australia’s transition to a
prosperous low carbon future.
That’s why they partnered to create climateworks australia - an independent, research-based, non-profit organisation committed to catalysing reductions in greenhouse gas emissions in australia.
since then, climateworks has built a reputation as a trusted, credible and fact-based broker by working in partnership with leaders from the private, public and non-profit sectors.
with strong links to the Us-based climateworks Foundation, climateworks australia also benefits from an international network of affiliated
organisations that support effective policies for greenhouse gas reduction.
Tracking aUsTralia’s progress Towards a low carbon economy
published by climateworks australia melbourne, Victoria, July 2013 © climateworks australia 2013 isbn 978-0-987-13414-1
This work is subject to copyright. apart from any use permitted under the copyright act 1968, no part may be reproduced by any process without written permission from the publisher. requests and inquiries should be directed to:
climateworks australia level 1, 31 Flinders lane melbourne Victoria 3000 p +61 3 9902 0741
e [email protected] This report may also be downloaded at
www.climateworksaustralia.org/tracking-progress
Acknowledgements
climateworks gratefully acknowledges the assistance of the climate change authority (in particular
John blanch, rebecca burdon, anthea Harris, clare penrose and kath rowley), the department of industry, innovation, climate change, science, research and Tertiary education (in particular chris baker, andrew bray, peter corcoran, steven kennedy, Joanne mulder), and the department of resources energy and Tourism (in particular subho banerjee, drew clarke, blair comley, sarah cruickshank, kris mccoy and dominic Zaal) in the preparation of this research.
we also extend our sincere appreciation to the experts, businesses and organisations that we interviewed or consulted for this project. a full list of acknowledgements is included in each sector report in the Tracking Progress series.
climateworks bears sole responsibility for the ideas expressed in this and the other reports in the Tracking
contents
1.1
executive
summary
5
1.2
index
of
progress
9
1.3
overview
of
activity
by
sector
15
1.4
context
and
technical
material
37
1.5
glossary 52
95 29 113 218 108 84 28 105 189 158 2002-03 emissions emissions2010-11 the AustrAliAn economy hAs GroWn stronGly over the lAst decAde, But emissions hAve remAined stABle This was mostly due to reduced deforestation, increased plantation forestry and reduced coal generation which resulted from a combination of more renewables and lower demand for grid-supplied electricity
565
+49563
-50
australia’s progress towards a low carbon economy
Australia has
embarked on the
transition to a low
carbon economy,
with an increase
in activity across
the economy to
improve energy
efficiency and
reduce greenhouse
gas emissions.
Aus
tr
alia’
s emis
sions
(m
tc
o
2e)
Buildings land-use and wasTe TRansPORT & OTHeR* indusTRY POweR legend improvements in energy efficiency of new buildings and distributed energyBuildings
land-use
and wasTe
strong improvements in energyefficiency and process emissions partially offset large increases in production
indusTRY
emissions from power generation dropped by 13% between ‘08-’09 and ‘12-’13
POweR
52%
annual area deforested halved since 2003, and area of plantation forests increased by 21%
3,000,000
almost 3 million hectares (equivalent to 4.2 million football fields) of land being managed to reduce emissions from wildfires
200,000
increased capture of methane from landfills and wastewater treatment plants, now used to generate enough electricity to power over 200,000 homes
32%
new offices now use about 32% less energy for heating, cooling and other base building uses than offices built 10 years ago
6
Most states improved residential energy efficiency standards from 5 to 6 stars in 2010
+1,000,000
Over 1 million homes now have solar panels installed, more than any other country
800,000
Over the last 4 years, large industrial companies saved as much energy as around 800,000 households use in a year
95%
Highly potent PFC emissions from aluminium reduced by 95% since 1989-90
58%
self-generated electricity and other off-grid electricity has increased by 58% between 2008-09 and 2011-12, mostly using lower emissions gas
5%
Reduction of 5% in demand for grid-supplied electricity since its peak in 2009–10, equivalent to the annual electricity consumption of Tasmania
12%
large-scale renewables now produce 12% of australia’s energy, up from 7% in 2003-04
14%
Coal generation decreased by 14% since 2003-04, mostly replaced by lower emissions gas and renewables
large reductions in net emissions from de- & re-forestation more than offset growth in other sectors since 2002-03 reduction in emissions from land-use and waste Growth in emissions from other sectors
recent Progress
australia’s progress towards a low carbon economy
if recent levels of emission reduction Activity Are
sustAined, it Would reduce By hAlf the exPected GroWth in emissions to 2019-20.
if the pipeline continues to deliver emissions reductions, and recent trends are
sustained, emission reduction activity would be led by continued industrial and residential energy efficiency and renewable energy including large-scale wind and smaller-scale solar PV.
2019-20
emissions if recent trends are sustained
645
-80
outlook to 2020
Abatement from industry -27 Abatement from power -32 Abatement from land use & waste-8
Abatement from buildings
-12
hoW Are We doinG?
THis wOuld geT us OVeR 40% OF THe waY TOwaRds THe 5% MiniMuM 2020 eMissiOns ReduCTiOn TaRgeT.
The remaining years from now to 2019-20 provide time to identify increased incentives to support local action, explore the role of international offsets, and consider increasing the target.
our PotentiAl
ausTRalia Has THe POTenTial TO ReduCe eMissiOns BY aT leasT 25% BelOw 2000 leVels, THe MiniMuM adVised BY iPCC sCienTisTs. Major remaining opportunities lie in further increasing renewables, avoided deforestation, reforestation, increased energy efficiency in buildings and industry, and a decrease in fugitive emissions from coal mines. improved energy standards
for buildings and appliances in homes, and distributed energy continuing to increase
Buildings
Future activity highly dependent on policy certainty and future carbon revenues
land-use
and wasTe
across-the-board improvements expected, partially offsetting strong growth in emissions from higher future productionindusTRY
strong pipeline of renewable energy projects and slow growth in energy demand expected to bring power emissions down further by 2019-20
POweR
30%
By 2019-20, waste from 30% of australian pigs is expected to
7%
Recent improvements in energy standards expected to drive a
113%
Meeting the Renewable energy Target would more than double renewable generation between 2012-13 and 2019-20
600,000
energy efficiency projects already in the pipeline could save as much energy annually as 600,000 homes use in a year 106 26 105 262 145 expected emissions increase due to economic growth in all sectors +162
Recent progress
strong improvements in large-scale renewable energy, reduced deforestation, increased industrial energy efficiency and an increase in distributed solar Pv have driven progress to date.
Whole-of-economy: over the past decade there has
been no growth in australia’s greenhouse gas emissions despite economic growth of 31 per cent between 2002-03 and 2011-12. This has been achieved as a result of significantly reduced deforestation and increased plantation forestry, together with some improvement in other sectors. since 2008-09, emission reductions from industry and power have accelerated, led by significant increases in renewable energy, a drop in demand for grid-supplied electricity and a tripling in the rate of energy efficiency improvement in large industrial companies.
Power: emissions intensity of grid-supplied electricity
generation has decreased, as a result of a 14 per cent decrease in black and brown coal generation since 2003-04. This has been a combined result of growth in wind generation to meet the renewable energy Target, a post-drought recovery in hydro generation, growth in gas generation and reductions in demand for grid-supplied electricity – contrary to previous expectations of continued growth. emissions have declined by 13 per cent between 2008-09 and 2012-13.
Industry: industry emissions intensity has been
decreasing, with a large increase in energy efficiency activity, lower overall emissions intensity of electricity used, and improvement in the emissions intensity of processes in the aluminium and cement industries. improved flaring and venting practices in oil and gas production have reduced the growth in fugitive emissions. despite a 25 per cent increase in industrial value added1 between 2002-03 and 2011-12, it is
estimated that emissions have only increased by 13 per cent, helped by these abatement activities.
Buildings: The energy intensity of australia’s buildings
has decreased slightly between 2002-03 and 2010-11, led by improvements in building efficiency standards as well as energy efficiency of equipment, appliances and lighting. buildings are also generating more of their own electricity, with large increases in residential solar pV in particular. These activities, combined with the decrease in the emissions intensity of grid-supplied electricity, have helped to slow the growth in emissions resulting from additional new buildings, and increased
1 ‘Value added’ refers to the total value of goods and services produced by an industry, after deducting the cost of goods and services used in the process of production (abs 2013)
ownership of appliances and space-conditioning. between 2002-03 and 2010-11, commercial building floor space increased by about 17 per cent and the number of households increased by 0.9 million or 12 per cent, but over the same period total emissions from buildings increased by only 8 per cent.
land-use and waste: overall, emissions from
forestry, agriculture and waste fell by 32 per cent from 2002-03 to 2010-11, due to large reductions in deforestation and increases in plantation forestry, as well as increased capture of waste gas from landfills and wastewater. emissions reductions from forestry, agriculture and waste have offset the growth in emissions from other sectors of the economy.
1.1 executive summary
drivers of industrial energy efficiency energy price rises was the most significant driver of energy efficiency activity mentioned by companies interviewed for this report, along with the carbon price and the energy efficiency opportunities (eeo) program. 82 per cent of respondents indicated that the carbon price has had a highly or moderately significant impact, mainly by increasing senior management focus and attention devoted to managing current and future carbon risks and liabilities.
Outlook to 2020
if the pipeline of projects continues to deliver
emissions reductions, and recent trends in abatement activity are sustained, emission reductions would be led by continued industrial and residential energy efficiency and renewable energy including large-scale wind and smaller-large-scale solar Pv.
Whole-of-economy: without any actions to reduce
emissions, economic growth between 2010-11 and 2019-20 would drive a 29 per cent per cent increase in emissions, led by increased industrial energy use and fugitive emissions, as well as harvesting (and not replanting) of plantation forests. However, if recent levels of emissions reduction activity are sustained, emissions would be reduced by 80 mtco2e to be 645 mtco2e in 2019-20. This would get australia over 40 per cent of the way towards the minimum 5 per cent emissions reduction target by 2019-20 through domestic action alone.
around 73 per cent of the opportunity identified in the
Low Carbon Growth Plan for Australia would remain
uncaptured, and the remaining years from now to 2019-20 provide time to identify increased incentives that could help capture these opportunities for local action, which could deliver a 25 per cent reduction in our national emissions (compared to 2000 levels). There also remains time to explore the role of international offsets in achieving our national target, and to consider increasing the current minimum 5 per cent target. whether recent trends can be sustained or increased is dependent on a range of factors including future electricity and fuel prices (particularly gas prices), technological improvements, sustaining current levels of regulatory support and incentives, and resolution of regulatory barriers and policy uncertainties.
Power: Higher demand for grid-supplied electricity
from an increase in industrial activity, more buildings and increased use of appliances will drive emissions up between now and 2019-20. This growth would be more than offset if recent trends in abatement activity are sustained – specifically, if energy efficiency in industry and buildings continues to improve at the same rate, and the renewable energy Target is met. if trends in these activities continue, generation from existing coal assets would decline by an additional 2 per cent from 2012-13 to 2019-20, leading to an 11 per cent decrease in emissions intensity of grid-supplied electricity from 2012-13 to 2019-20.
Industry: australia’s industrial sector is expected to
continue to grow strongly between now and 2019-20, particularly in lng production, coal and metal ore mining and alumina production and despite no growth assumed from manufacturing.
This growth would drive strong increases in energy use and fugitive emissions in particular. However, continued improvements in energy efficiency and process emissions intensity (especially in cement and chemicals) would contain growth in the sector’s emissions to around 20 per cent from 2010-11 to 2019-20, offsetting nearly half the increase in emissions due to economic growth.
Buildings: increases in the total number of australian
households and volume of commercial building floor space, coupled with an increase in the use of energy-consuming appliances, would drive up emissions from buildings by 19 per cent by 2019-20 with no further abatement activity. This increase would be more than offset if recent trends in energy efficiency improvements to buildings and appliances continue, and the rate of installation of solar panels and other on-site power generation is sustained. emissions from buildings are also heavily impacted by changes in the power sector, which determine how much emissions are released for each unit of grid-supplied electricity consumed.
Land-use and waste: The strong reductions in
emissions from land-use and waste over the last decade are not currently expected to continue, with plantation forests expected to be harvested for timber and not replanted, new plantation rates expected to remain low, and livestock numbers expected to recover post-drought. most of the potential for future activity to reduce emissions from land-use and waste is dependent on certainty of future revenues from government initiatives such as the carbon Farming initiative (cFi) and the carbon price.
unlocking further industrial energy savings of the industrial companies interviewed, those that identified and implemented the most energy savings saved three times more energy than average companies and ten times more than those who identified and implemented the least. This suggests that there is considerable scope for additional savings within the sector. The most effective corporate practices for improving energy efficiency were found to be regular analysis of energy data, inclusion of energy management considerations in operational guidelines, and senior management oversight of energy management. respondents that reported a high score for implementation of these practices achieved three times more savings than those that did not. a range of factors continue to inhibit further uptake of energy efficiency activity, including access to internal capital, the payback period for projects, opportunity cost and operational risk.
How do different sectors compare?
The emissions reduction activities that have grown most strongly between 2002-03 and 2012-13 (or the latest year for which data is available) are reduced deforestation and increased afforestation, followed by renewable energy and industrial energy efficiency.
looking forward to 2019-20, if recent trends are sustained, the largest emissions savings would come from the power sector (32 mtco2e), followed by the industrial sector (27 mtco2e) and then buildings (12 mtco2e). a small amount of abatement (8 mtco2e) would come from land-use and waste.
activities to reduce emissions in buildings and industry were expected to be the first of the opportunities identified in the Low Carbon Growth Plan for Australia taken up, as many of these are energy efficiency opportunities that can deliver a financial return to the investor. activities in power (beyond what is required to meet the renewable energy Target) and land-use and waste were expected to require additional incentives or a higher carbon price than currently exist, without which they mostly do not deliver a financial return to the investor. These expectations largely align with the results in this report.
This activity would offset a portion of the growth in emissions to 2019-20, led by strong growth (81 mtco2e) in industrial emissions, particularly from lng production and mining.
How much potential remains?
The sectors with the greatest estimated uncaptured potential to reduce emissions are land-use and waste (93 mtco2e) and power (69 mtco2e), followed by buildings (29 mtco2e) and then industry (21 mtco2e). These estimates are based on the potential to reduce emissions in each sector identified in the Low Carbon
Growth Plan for Australia (see section 1.3.4 below for
further detail).
key activities that could be undertaken to further reduce australia’s emissions include:
> Power: Further shift from coal generation through increased large-scale renewable energy (including beyond the large-scale reT target of 41,000 gwh by 2020), increased gas generation, and further further reductions in demand for grid-supplied electricity in other sectors.
> Land: significant remaining opportunities across the range of activities eligible for the carbon Farming initiative, particularly in avoided deforestation and afforestation.
> Industry: increased uptake of energy efficiency, and decrease in fugitive emissions through the capture and combustion of methane from gassy coal mines. > Buildings: improved building standards and
operational performance for all buildings, and increase in retrofitting opportunities for existing residential and especially commercial buildings. .
What lessons can we learn?
The variation between activity levels in different sectors can be explained by a combination of
macroeconomic factors and the impact of policy and regulatory programs.
within this context, some common themes in the results suggest the following implications for
maintaining and increasing the implementation of low carbon activity in australia:
> Price signals are powerful: activity trends are strong in sectors that can respond easily to effective price signals, while funding support has stimulated activity in companies and households. sectors facing a multiplier of the carbon price have seen particularly strong uptake of new technology to reduce emissions.
> Uncertainty is a drag: There is less evidence that activities to reduce emissions will take place in the future in areas that have higher upfront costs and rely on an expectation of stable and sufficient policy drivers or incentives over the longer term for their financial return on investment.
> Regulation is reliable: where regulation sets a minimum standard or requirement, there is clear evidence of steady, ongoing abatement activity. Verification is often required to ensure that regulations are working as intended.
> Macroeconomic factors can still throw a curve
ball: some of the largest changes in emissions
per sector are linked to macroeconomic factors. changes in these factors can outweigh or weaken the momentum from emissions reduction activities.
1.5 1.0 0.5 0.0 2011 -12* 0.77 1.31 1.01 2010 -11 0.79 1.27 1.00 2009 -10 2008 -09 2007 -08 2006 -07 2005 -06 2004 -05 2003 -04 2002 -03
Emissions intensity of economy (per unit of GDP) GDP Emissions 0,0 1,3 1,2 1,1 1,0 20 19 -20 0,89 1,29 1,14 20 14 -15 20 10 -11 Emissions intensity Estimated output growth** Emissions
* 2011-12 emissions data is preliminary only
** estimated based on emissions growth with no further abatement activity, which mostly reflects output growth in each sector.
1.2 index of progress
Whole-of-economy
if current trends are sustained, emissions reduction activity would be led by continued industrial and residential energy efficiency, and uptake of renewable energy such as large-scale wind and smaller-scale solar pV. strong reductions in
deforestation and increases in afforestation have contributed a major share of abatement in the last decade. in addition, there has been a strong increase in renewable energy generation and industrial energy efficiency. Emissions stable despite economic growth Outlook to 2020 Recent progress Current trend would deliver 27% of identified potential
What factors influenced the abatement activity? state regulation of land clearing
renewable energy Target rising energy prices
carbon price and energy reporting programs buildings and appliances standards
new energy uses in buildings
What factors will influence abatement activity? renewable energy Target
slow growth of electricity demand High energy prices and carbon price carbon revenue uncertainty
potential changes to land clearing regulations growth in gas production and mining
possible gas price increases exhibit 1.1: Change in emissions and emissions
intensity, indices (diiCCsRTe 2013a, aBs 2013, Climateworks team analysis)
exhibit 1.2: Change in emissions and emissions intensity, indices (diiCCsRTe 2013a, Climateworks team analysis)
Change relative to historical levels & expectations
no improvement or backwards patchy or limited improvement some improvement moderate improvement strong improvement Legend Upside factors downside factors
Share of potential identified in the Low Carbon Growth
Plan (LCGP) that current trend would deliver
no abatement captured
little abatement captured (1–25%) some abatement captured (26–50%) moderate abatement captured (51–75%) significant abatement captured (>75%) Legend
Upside factors downside factors
-8 -12 -27 -32 162 145 108 158 262 218 189 105 113 105 97 88 77 26 Abatement from Land use & waste Abatement from Buildings Abatement from Industry Abatement from Power Emissions due to economic growth 2010-11 emissions 563 29 2002-03 emissions 565 28 Additional abatement identified in LCGP (25% target) Additional abatement required to reach 5% target 2019-20 emissions 645 Land use and waste
Industry Buildings Transport Power (remainder) Other 6 8 23 17 10 4 5 Land use & waste 8 Buildings Industry 2 12 3 27 2 Power 32 Abatement if current trends continue
Abatement from projects in the pipeline Abatement from existing projects
108
221
Abatement categories
Emissions categories
between 2002-03 and 2010-11, australia’s
emissions remained stable despite strong economic growth, driven by a 32 per cent decrease in land-use and waste emissions which counterbalanced emissions growth in other sectors of the economy. if there is no further abatement activity beyond 2009-10*, australia’s emissions would increase by 29 per cent by 2019-20, a result of strong growth in the resources sector (in particular natural gas production, coal and metal ore mining) and increases in forestry emissions (as plantation forests are harvested and not replanted). However, if current trends are sustained, abatement activity would deliver 80 mtco2e of emissions reductions, halving the growth in australia’s emissions from 29 to 15 per cent.
Exhibit 1.3: Australian emissions, MtCO2e (diiCCsRTe 2013a, Climateworks team analysis)
The power sector would contribute 32 mtco2e of this abatement through a decrease in grid-supplied electricity emissions intensity, driven by an increase in large-scale renewable energy, and a reduction in coal-fired generation. industry, with 27 mtco2e of abatement, would be the second largest contributor if current trends are sustained, driven primarily by continued improvements in energy efficiency. The buildings sector would contribute 12 mtco2e through reduced electricity consumption per household and increased solar pV uptake. land-use and waste would contribute a further 8 mtco2e, with a strong increase in waste methane capture, but limited activity in reduced deforestation and carbon sequestration expected in the current context.
PO
WER
see reporT 2
Assessment of sector improvement in emissions reduction activity
Demand: demand for grid-supplied electricity across australia decreased by 5% between 2009-10 and 2012–13, contradicting strong growth projections Renewables: generation of large-scale renewables has grown by 62% between 2003-04 and 2012-13, led by an increase in wind and a recovery in hydro generation Fossil fuels:generation from coal decreased by 14% between 2003-04 and 2012-13, and gas generation doubled
The emissions intensity of Australia’s power generation decreased by 8% from 2008-09 to 2012-13, with overall emissions decreasing by 13% since 2008-09 INDUSTR Y see reporT 3 Strong improvements in energy efficiency and process emissions offset by large increases in production
Energy efficiency: energy efficiency improvements of around 1.3% per annum between 2007-08 and 2009-10, in line with international leaders
Energy mix: 5% improvements in emissions intensity of industrial energy use from 2002-03 to 2011-12
Industrial processes: strong improvements in aluminium, cement and chemicals led to 10% decrease in the emissions intensity of those sectors between 2002-03 and 2010-11 Fugitive emissions: increase in coal field intensity has countered improvements from oil and gas production
BUILDINGS
see reporT 4
Improvements in energy efficiency of new buildings and distributed energy mostly offset by additional buildings and increased use of electricity by electronics and space conditioning in homes
New commercial: strong improvement in new offices base buildings, and likely improvements in remaining bulding types due to increased standards
Existing commercial:energy intensity per m2 has improved by an average 0.3% per annum
New residential: increased efficiency standards have decreased heating and cooling energy consumption of new homes by 17% since 2010
Existing residential: energy use per household improved on average by 0.3% per annum driven in particular by improved appliance, water heating and lighting efficiency Distributed energy: over 1 million small scale solar systems now installed across australia, and cogeneration is believed to have increased
LAND-USE AND W
ASTE
see reporT 5
Large reductions in net emissions from de- and re-forestation have more than offset growth in other sectors since 2002-03
Deforestation: The annual area deforested has halved since 2003, leading to a 45% reduction in emissions Afforestation: Total area of plantation forests increased by 21% in the last decade, but dropped sharply since 2007 Waste: between 2002-03 and 2010-11, there has been a 60% increase in abatement of waste gas
Agriculture: limited emissions reductions to date, despite improvement in some areas e.g. piggery methane capture
Change relative to historical levels & expectations
no improvement moderate improvement
limited improvement strong improvement
some improvement data unavailable
Legend
Factor that has driven emissions reductions Factor that has impeded emissions reductions
PO
WER
Key achievements Key influencing factors Case studies
wind generation now accounts for 31% of all renewable generation, enough to power 1 million households Fuel efficiency levels were maintained in coal assets, despite reduced utilisation which can affect efficiency improved energy efficiency in buildings and industry renewable energy Target driving investments in new renewable capacity carbon price
agl’s macarthur wind Farm is estimated to produce 1.2 Twh of electricity a year, equivalent to powering 220,000 average Victorian households.
INDUSTR
Y
it is estimated that eeo companies have implemented savings reducing their energy use by 5% Highly potent pFc emissions from aluminium were reduced by 95% since 1989-90
rising energy prices energy reporting programs carbon price
increased production, particularly in mining and natural gas
anglo american’s moranbah north waste coal mine gas facility abates and displaces about 1.3 million
tonnes of co2e each year, producing enough energy to
power approximately 48,000 homes.
Through energy efficiency and greenhouse gas saving
opportunities, Toyota reduced the intensity of co2
emissions per vehicle by 20% between 2005–06 and 2011–12.
BUILDINGS
ban of electric hot water heaters likely to reduce water heating emissions by almost 50% in new homes australia has over 1 million homes with a solar pV system installed, more than any country in the world green star offices emit nearly half less than offices built to meet ‘minimum standards’
strengthening of building standards competition in high end office market renewable energy Target decreasing technology costs lack of verification that performance meets standards new energy uses
in 2012, 32 existing commercial buildings used the buildings alive pulse energy monitoring platform to better manage energy consumption, saving an
average of 200 tco2e each and over 6,000 tco2e
across the portfolio.
a quarter of all homes built by graduates of the master builders australia green living builders program were more efficient than the minimum 6 star natHers requirement
LAND-USE AND W
ASTE
Total area of forest plantation reached 2 mha in 2011, equivalent to 2.8 million soccer fields landfills and waste water treatment plants now generate enough energy to power more than 200,000 homes
state regulation of land clearing
Tax concessions for forestry
revenue from carbon offsets
energy generation and renewable energy certificate for biogas
blantyre pig farm in new south wales has reduced greenhouse gas emissions by approximately 250
tco2e per year through the collection of effluent
gases which are then used to power a biogas system that returns electricity to the grid.
PO WER LAND-USE AND W ASTE INDUSTR Y BUILDINGS A strong pipeline of renewable energy projects and slow growth in grid electricity demand are expected to see overall power sector emissions decline by 2019–20, delivering 32% of the LCGP potential
Demand: reduction in demand from manufacturing and residential buildings (including solar pV) to contain demand rise to 6% growth from 2010–11 to 2019–20 renewables: meeting the renewable energy Target (reT) would more than double renewable generation by 2019-20, delivering 40% of the lcgp potential
Fossil fuels: expected future demand and increased renewables are expected to keep coal generation at 2012-13 levels, delivering 20% of lcgp potential
see reporT 2
Share of Low Carbon Growth Plan potential that current trend would deliver
Across-the-board improvements expected to deliver 57% of LCGP potential, partially offsetting strong growth in emissions from higher future production
Industrial energy efficiency: continuation of current high levels of energy efficiency is possible, and would deliver 53% of lcgp potential
Energy mix:continued shift to gas would lead to an 8% decrease in emissions intensity
Industrial processes: step change expected in chemicals, and continued improvements in cement likely to capture nearly all the lcgp potential
Fugitive emissions:improved efficiency of oil and gas production but limited improvements in coal mining are set to deliver 43% of lcgp potential
see reporT 3
Strong improvements in energy efficiency in homes and increases in solar PV uptake are expected if recent trends are sustained, but limited improvements expected overall in non-office commercial buildings. This would deliver 30% of the LCGP potential
New commercial: expected improvements in small group of market leaders, but no data on other building types Existing commercial: energy intensity per square metre on trend to reduce by 3% by 2020, delivering 8% of lcgp potential
New residential:recent trends would deliver an
estimated 8% reduction in the maximum allowable energy to heat and cool new homes, or 15% of lcgp potential Existing residential: reversal of historic growth in residential electricity use expected from recent
improvements in standards for new builds and appliances. on track to capture nearly two third of lcgp potential Distributed energy:solar pV could reach about 13% of residential electricity use in 2020, exceeding lcgp potential
see reporT 4
Only 8% of LCGP potential would be captured, with regulatory uncertainty limiting carbon sequestration activity, and forestry emissions increasing as plantation forests are harvested and not replanted
deforestation: recent gains from reductions in deforestation at risk due to relaxed clearing laws Afforestation: Very limited additional afforestation expected by 2019-20, delivering only 2% lcgp potential Landfill waste:current trends would lead to a 48% increase in methane abatement from landfill and wastewater gas, capturing more than the lcgp potential Agriculture: activity is increasing in some areas, but only 15% of lcgp potential would be captured without further incentives, research and development
see reporT 5
Share of available potential that current trend would deliver
no abatement captured 51%–75%
1–25% 76%+
26%–50% data unavailable
Legend
Factor that could drive emissions reductions Factor that could impede emissions reductions PO WER LAND-USE AND W ASTE INDUSTR Y BUILDINGS
There is twice as much renewable energy capacity in the pipeline than what’s needed to meet the renewable energy Target There is no prospect of lock-in from new major coal projects before 2019-20
renewable energy Target, carbon price electricity demand remaining soft possible gas price increases
planning regulations limiting wind development
coal generator delta electricity is starting to consider the quality of black coal in its purchasing decisions, aiming to prioritise coal with a higher energy to emissions ratio, which will impact on future coal supply contracts.
What’s in the pipeline? Key influencing factors Case studies
Outlook to 2020
projects that have been awarded cTip grants will be able to save up to 75 pJ of energy, equivalent to 8 mtco2e of abatement n2o abatement technology likely to be installed in all ammonium nitrate plants
energy price rises incentivising energy efficiency activity carbon price, cTip grants and eeo increased company capability
possible gas price rise could incentivise fuel shift to coal
as a result of an increased focus on energy
management from senior executives, csr has been able to take advantage of the cTip grants announced in 2012 by the australian government.
carlton & United breweries has now signed onto its parent company sab miller’s world wide targets on energy and greenhouse gas reduction which will further incentivised energy reductions.
almost all office buildings under construction in major capital cities are green star registered current trends would lead to a three fold increase of solar generation by 2020 greener government building program could
deliver 1.2 mtco2e of abatement by 2019-20 Further increases in electricity prices improved information new technologies regulatory uncertainty
a 2mw tri-generation plant at central park, a new precinct in sydney’s cbd, will save 7,600 tonnes of
co2 per year once the entire system comes online
which equates to 190,000 tonnes of emissions reductions over its 25 year design life.
once complete, the barangaroo precinct in sydney will source all of its electricity from on and offsite solar panels with excess generation returned to the grid.
45 mw of landfill gas generation capacity is currently in development with a further 18 mw under evaluation adoption of methane capture at piggeries is expected to increase to cover 30% of australia’s pig herd by 2019-20 potential changes to land clearing regulations could lead to more deforestation carbon revenue uncertainty investment in research could increase adoption
with help from the north australian indigenous land and sea management alliance (nailsma), local communities are reducing emissions from fires in northern australia, and receiving credits under the cFi.
1.3.1 Recent progress
strong reductions in deforestation combined with increases in afforestation have contributed a large portion of the emissions reductions in the last decade. in addition, there has been a strong increase in renewable energy generation and industrial energy efficiency.
australia’s economy has grown strongly between 2002-03 and 2010-11, particularly in mining and resources. However, emissions over that period have remained stable (see exhibit 1.4 below), with australia’s total emissions in 2010-11 almost the same (563 mtco2e in 2010-11) as a decade ago (565 mtco2e in 2002-03). early estimates of 2011-12 emissions (566 mtco2e) (diiccsrTe 2013b) suggest that growth in emissions has been limited since 2010-11.
australia’s economy now emits more than 20 per cent fewer greenhouse gas emissions for each dollar of gdp than it did a decade ago. The ‘carbon emissions intensity’ of the australian economy has improved over the decade to 2011-12 from 0.51 kilograms of co2e per dollar of gdp in 2002-03 to an estimated 0.39 kilograms of co2e per unit of gdp in 2011-12. many other factors have influenced the average emissions intensity of the economy. in particular, changes to the economic mix are likely to have played a significant role. The prime minister’s Task group on energy efficiency suggested that a structural shift from manufacturing to a services-based economy may account for a proportion of the improvements seen in australia’s overall energy intensity (pmTgee 2010).
growth in highly emissions intensive sectors such as the resources sector may have the opposite effect, contributing to an increase in emissions intensity. while macroeconomic factors have been considered in this analysis, the focus has been on the changes in emissions reduction activity, and on the impact that these changes are likely to have had on the emissions and emissions intensity of each sector analysed.
1.3 overview of activity by sector
158 108 189 218 105 113 77 88 remainder of power emissions Transport other buildings land use and waste industry 0.0% 563 29 8 565 28 7 -32% +15% +8% +14% +2%
exhibit 1.4: Recent changes in australian emissions, MtCO2e (diiCCsRTe 2013a)
PoWer
the emissions intensity2 of Australia’s grid-supplied
electricity generation has decreased, with strong reductions in coal generation. total emissions have decreased by 13 per cent since its peak in 2008-09 to 2012-13.
demand: australia’s electricity demand reduced by
5 per cent between 2009-10 and 2012-13, contrary to previous expectations of continued growth in demand. This reduction of about 12,000 gwh is equivalent to eliminating Tasmania’s annual electricity use in recent years. reductions in electricity demand have come primarily from a reduction in manufacturing output, increased uptake of distributed energy particularly solar pV, milder weather in the last 4 years leading to less heating and cooling, and improvements in energy efficiency in industry and buildings3.
renewables: generation of electricity from
large-scale renewables grew by 62 per cent between 2003-044 and 2012-13, led mostly by wind and a
post-drought recovery in hydro. renewables now generate 12 per cent of all electricity in australia, up from 7 per cent a decade ago.
The large-scale renewable energy Target (lreT) legislation requires that australia generate 20 per cent or 41,000 gwh of large-scale renewable energy by 2020. it has driven a surge in investment in wind power, with generation from wind energy growing from 214 gwh in 2003-04 to 7,744 gwh in 2012-13.
fossil fuels: electricity generation from coal
decreased by 14 per cent between 2003-04 and 2012-13. This shift has been driven by a combination of the
2 The volume of greenhouse gases emitted for each unit of electricity produced, e.g. tco2 / mwh of electricity produced. 3 more details on analysis in the industry and buildings sectors are in reports 3 and 4 of the Tracking progress series.
4 data for this sector was not available for 2002-03.
5 2012-13 data is based on estimates using national electricity market (nem) data
lreT, the carbon price, increased gas generation and a reduction in demand for grid-supplied electricity. The reduction has been most pronounced in the last 4 years.
The historic growth in total emissions from electricity generation has stalled. while emissions from the sector grew steadily from 2003-04 and peaked in 2008-09 at 7 per cent above 2003-04 levels, this trend has since reversed, with a sharp fall in emissions of 13 per cent between 2008-09 and 2012-13. emissions from the sector are now almost 3 per cent lower than they were in 2002-03, after having increased steadily between 2002-03 and 2008-09. 0.90 0.95 1.00 1.05 0.00 0.89 0.85 2011 -12 2010 -11 2009 -10 2008 -09 1.04 1.02 2007 -08 2006 -07 2005 -06 -15% -16% 2012 -13 2004 -05 2003 -04 1.00 brown coal black coal
exhibit 1.5: generation of black and brown coal 2003-04 to 2012-13, index (esaa 2005-2012, aeMO 2013)5
what’s driving down coal generation?
The reduction in coal generation has been most pronounced in the last 4 years. since 2008-09, total coal generation has decreased by 16 per cent, mostly driven by a 16 per cent reduction in black coal generation, as well as a 15 per cent reduction in brown coal generation.
while black coal generation has been steadily declining since 2008-09, brown coal generation remained relatively stable until 2011-12. a sharp decrease (12 per cent) in brown coal generation was seen from 2011-12 to 2012-13.
many factors contributed to this decrease, including flooding and industrial action at yallourn, the introduction of the carbon price in July 2012 (which is expected to have affected brown coal generators the most given their high emissions intensity), and continued reductions in electricity demand.
The steady decrease in black coal generation, however, suggests that black coal generators have been more heavily affected by the softening demand for grid-supplied electricity and the increase in renewable generation.
when demand for electricity drops, some power stations must reduce the amount of electricity produced. renewables such as wind farms have a very low marginal cost (the cost to produce one unit of electricity, once the station is built), as they do not require fuel inputs which means they often take precedence over fossil fuel power stations.
latest data suggests that recent reductions in demand for grid-supplied electricity have been primarily from decreases in industrial production, as well as from reductions in auxiliary consumption by coal power plants, a stabilisation in buildings electricity consumption and strong uptake of residential solar Pv.
demand for grid-supplied electricity consumption comes from buildings, industry, agriculture,
Transport, losses occurring during the transmission and distribution of electricity from power stations to the locations where it is used, and auxiliary consumption of electricity for the operation of power stations themselves.
while there is data showing the total amount of demand for grid-supplied electricity, there is only incomplete data available on how each of these components that make up this total demand have changed between 2010-11 and 2012-13. we have attempted to estimate the changes, building upon our analysis of the power, industry and buildings sectors. These are the sectors in which demand is expected to have changed significantly over this period.
Auxiliary consumption and transmission and distribution losses: There is comprehensive data on
grid-supplied electricity generation by fuel type, which allowed an estimate to be made of auxiliary consumption from power generation plants. This data suggests that strong decreases in black and especially brown coal generation have resulted in an 8 per cent decrease in auxiliary consumption. coal generation accounted for more than 90 per cent of all auxiliary consumption in 2010-11. data on grid-supplied electricity generation was also used to estimate transmission and distribution losses, which have been decreasing in line with total grid-supplied electricity consumed.7
industry demand for grid-supplied electricity: There
is also some data available on the changes in demand for grid-supplied electricity from industrial companies. in order to estimate grid-supplied electricity demand in 2011-12, the 2010-11 data was adjusted to account for changes in grid-supplied electricity use that were reported through the ngers program and for known changes in manufacuring output in some sectors. in order to obtain 2012-13 estimates, the reduction in grid-electricity use from the closure of the kurri kurri aluminium smelter, which occurred in June 2012 and was estimated to account for 9 per cent of total electricity use in aluminium smelters in 2010-11 (dccee 2012, australian aluminium council 2012), was subtracted from the 2011-12 estimates. we also assumed that observed reductions in grid-supplied electricity demand between 2011-12 and 2012-13 that the data does not otherwise explain were from the
7 we have assumed that the rate of auxiliary consumption by fuel type, and the amount of electricity lost in transmission and distribution networks as a proportion of the amount of electricity sent-out into the grid remain constant past 2010-11.
industry sector (which corresponds to 0.3 Twh). The resulting estimates suggest that a decrease in industrial output could account for about a 7 per cent reduction in grid-supplied electricity use, or a 5 Twh reduction in two years, which would make up most of the total reduction observed between 2010-11 and 2012-13.
Agriculture and transport: consumption for agriculture
and Transport in 2011-12 were taken from the recent bree energy statistics (bree 2013), and were assumed to remain constant between 2011-12 and 2012-13.
Buildings demand for grid-supplied electricity: The
sector with the least data is buildings. The estimated buildings grid-supplied electricity usage in 2011-12 was obtained by subtracting the other sectors consumption from total grid-supplied electricity generation. Using the assumptions for other sectors, the analysis suggests that total electricity consumption from buildings has remained relatively stable between 2011-12 and 2012-13, with increased solar pV uptake leading to a slight decrease in demand for grid-supplied electricity. There is a high level of uncertainty on these findings, especially as the data used to estimate industrial electricity use is only partial - the actual saving could have been greater than estimated. However, this preliminary result supports the assumption made in this report that the historical trend of steady growth in buildings electricity use is likely to have started to reverse, at least in the residential buildings sector. This analysis is preliminary only. Further research would be needed to establish the exact contribution of each sector to the recent changes in demand.
exhibit 1.6: estimated grid-supplied electricity use
distribution, Twh (BRee 2012, Climateworks team analysis)
69 73 71 67 108 119 117 117 14 13 13 12 16 16 17 15 2003-04 212 6 2012-13* 218 6 2011-12* 224 6 2010-11 228 6 108 119 117 117 2012-13* 120 3 2011-12* 120 3 2010-11 121 2 2003-04 108 0 auxiliary consumption
Transmission and distribution losses agriculture and Transport
solar industry buildings
industry
industrial emissions intensity8 has been improving
in recent years, driven in part by a large increase in energy efficiency activity, more self-generation of electricity using gas, and improvement in the emissions intensity of processes in the aluminium and cement industries.
energy efficiency: energy use accounts for the largest
share of industrial emissions. between 2007-08 and 2009-10, the annual rate of improvement in energy efficiency across the sector as a whole has been 1.3 per cent of energy use per year. This compares with the most rapid energy efficiency improvement rates internationally, although australia started from a low base compared to other oecd countries due to historically low energy prices and is now catching up. These improvements have helped reduce the growth in industrial energy consumption, but were offset by strong production growth amounting to a 25 per cent increase in industrial value added9 between
2002-03 and 2011-1210.
changes in energy mix: The emissions intensity of
industrial energy consumption11 improved by almost 5
per cent between 2002-03 and 2011-12. industrial use of grid-supplied electricity has decreased by 8 per cent between 2008-09 and 2011-12 while self-generated electricity and other off-grid electricity use increased by 58 per cent from 2008-09 to 2011-12. most
self-8 emissions intensity has been defined as the amount of emissions produced for each unit of output or other metric, e.g tonnes of co2e per $m value added
9 ‘Value added’ refers to the total value of goods and services produced by an industry, after deducting the cost of goods and services used in the process of production (abs 2013)
10 2011-12 data in this report has been estimated based on recent trends in industrial output and available public data. 11 The amount of emissions produced for each unit of energy consumed
generated electricity uses gas as its fuel input and is less emissions-intensive than grid-supplied electricity. it is mostly associated with growth in the resources sector, often in remote areas. The emissions-intensity of grid-supplied electricity has also declined12, which has
helped to reduce overall emissions intensity of industrial energy consumption.
industrial processes: greenhouse gases released as a
result of industrial processes (also referred to as process emissions in this report) accounted for 15 per cent of all industrial emissions in 2010-11. The aluminium, iron and steel and cement industries have driven a 10 per cent reduction in their average emissions intensity between 2002-03 and 2011-12 through strong decreases in perfluocarbon (pFc) emissions in the aluminium industry and the use of supplementary materials to replace clinker in cement making.
The emissions intensity of ammonium nitrate production (used in fertilisers and explosives) has started to decrease in the last few years through the piloting of technologies which transform the nitrous oxide produced in the process into nitrogen gas. nitrous oxide is responsible for nearly half of all industrial process emissions in the chemical industry.
fugitive emissions: Fugitive emissions released during
the extraction, transportation and handling of coal, oil and gas accounted for 19 per cent of total industrial emissions in 2010-11. improved flaring and venting practices in oil and gas production has reduced the growth in fugitive emissions resulting from substantial production increases in the sector.
12 see report 2: power of the Tracking progress report series for further details
How companies are improving energy efficiency companies interviewed for the special report on factors influencing large industrial energy efficiency listed numerous energy efficiency projects delivered in recent years, including: > improving cooling tower operational control > Upgrading boilers (including changing fuels) > waste heat and steam capture and re-use projects > Upgrading lighting
> installing co-generation plants
> improving crushing and grinding on mining sites > improving compressed air processes
> installing variable speed drives on conveyors.
Reducing aluminium process emissions significant effort has been made by aluminium producers to improve the operation of smelters since 1990, resulting in a 95 per cent reduction in perfluorocarbons (pFcs) produced. pFcs are powerful greenhouse gases with over 7,000 times the 100-year global warming potential of carbon dioxide.
Transforming nitrous oxide into thin air nitrous oxide (n2o) has a global warming effect around 300 times greater than carbon dioxide, attracting a high carbon liability.
chemicals producers are using catalysts to convert nitrous oxide into nitrogen and oxygen, the main components of the atmosphere. This technology can reduce n2o from chemicals production by up to 85 per cent.
several projects have been implemented to capture waste coal mine methane for electricity generation, driven by government incentives for carbon abatement. However carbon price uncertainty has restricted the pipeline to only a few projects. The reduction in emissions achieved through improvements in waste methane capture appear to have been offset by an increase in the average emissions intensity of coal production due to increased coal mining in regions with particularly ‘gassy’ geology.
combined, the activities described above have helped to decrease the overall emissions intensity of australia’s industrial output by an estimated 10 per cent between 2002-03 and 2011-12. in other words, despite strong growth over this period (in particular in mining and resources) which saw industrial value added grow by 25 per cent, emissions from the sector are estimated to have grown by only 13 per cent.
drivers of industrial energy efficiency in-depth interviews with energy or environmental managers (or similar role) from large industrial companies indicate that a range of factors have led to increases in energy efficiency activity.
The most significant influencing factor mentioned by companies interviewed was energy price rises. other factors cited as significant included the carbon price and energy efficiency opportunities (eeo) program. eighty two per cent of respondents indicated that the carbon price has had a highly or moderately significant impact on their energy efficiency activity, with 41 per cent stating it has had a highly significant impact.
among respondents, the carbon price impact appeared to differ by sector (see exhibit 1.7), but the most significant impact was to increase senior management focus and attention devoted to managing current and future carbon risks and liabilities.
see report 6: special report on factors influencing large industrial energy efficiency) of the Tracking
Progress report series for further detail.
exhibit 1.7: average reported impact of carbon price on improving energy efficiency by industry sector and manufacturing sub-sector (Climateworks team analysis) Boral enVisiaTM concrete reduces carbon
by over 40%
boral is one of australia’s largest
manufacturers of concrete, cement, bricks and other construction and building materials. clinker is the main ingredient used to make cement. approximately half of boral’s cement emissions in any year are from emissions released during production of clinker. boral has recently developed a technology (ZepTm) which can reduce the overall
embedded carbon of the final enVisiaTm
concrete product by well over 40 per cent. The emissions reduction is achieved without affecting the strength or durability of the concrete product.
Full case study available in report 3: industry of the Tracking Progress report series.
1.5 1.9 2.4 2.5 construction mining manufacturing water & waste
(3= highly significant, 1=not significant)
2.0 2.3 2.4 2.5 2.7 2.8 minerals
petroleum and gas wood, paper and printing Food and beverage chemicals metals
detail by manufacturing sub-sector average by sector
BuildinGs
the energy intensity of Australia’s buildings has decreased by 3 per cent between 2002-03 and 2010-11, led by improvements in the operation of buildings, improved energy efficiency standards, more efficient appliances and distributed energy.
new commercial buildings: new building standards are
estimated to have delivered about a 32 per cent reduction in emissions from office base buildings. This comprises heating, cooling, ventilation, common area lighting and elevators but only accounts for around 12 per cent of commercial building energy use. lack of data prevents accurate estimates of recent changes in office tenancies and other commercial building types.
existing commercial buildings: energy intensity of the
building stock overall has improved slightly (2 per cent) over the last 10 years, driven by a small number of market leaders and capture of ‘low hanging fruit’ in other buildings. other than in large offices, activity has been patchy and fragmented and often linked to government incentives and white certificate schemes.
new residential buildings: The maximum allowable
energy intensity for heating and cooling has
decreased on average by 17 per cent since 2009-10 when building fabric standards were increased.
existing residential buildings: across the residential
building stock as a whole there has been a slight (2 per cent) decrease in energy intensity, due mostly to improvements in appliance efficiency, hot water and lighting.
distributed energy: The rapid uptake of small scale
solar has contributed to slowing down demand for grid-supplied electricity from homes. more than one million australian homes now have a solar pV system installed, representing a five-fold increase from 2008-09 to 2011-12. in 2012 australia had the highest number of residential solar installations in the world. commercial buildings have had strong uptake of co- and tri-generation, however no comprehensive dataset exists.
These activities, combined with the decrease in the emissions intensity of grid-supplied electricity (see power section above), have helped to slow the growth in emissions resulting from additional new buildings, and increased ownership of appliances. between 2002-03 and 2010-11, commercial building floor space increased by about 17 per cent and the number of households by 12 per cent, but over the same period total emissions from buildings increased by only 8 per cent.
expanding the base of market leaders
rating tools, predominantly green star and nabers, have helped reduce the emissions intensity of
commercial buildings.
The green star tool provides a framework for the design and construction of high performing buildings, with the lowest rating requiring best practices to be demonstrated. The tool provides a rating based on the building’s design in a number of areas of environmental impact, focusing on minimising energy and emissions. on average, green star office buildings emit 45 per cent fewer emissions than new office buildings built to current efficiency standards. The nabers rating tool is predominantly used to assess the emissions intensity of building operations. since its inception in 1998 participation has
increased, with two thirds of australia’s commercial office building stock rated in 2011-12. large
institutional property owners have led the uptake of nabers, using the tool to assess their premises and re-rate following building upgrades. in 2010 the proportion of buildings performing at or above best practice was so high that the nabers scale was extended to 6 stars to diversify the market leaders. Today, these tools are supporting significant
improvements in high-end commercial offices, driven by competition for tenants. penetration in other building types is increasing but still only a small proportion in most sub-sectors.
Buildings using energy more efficiently
buildings can generally improve energy efficiency by: > Upgrading appliances and equipment such as
lights and heating and cooling systems > retrofitting the building fabric to improve its
ability to retain heat in winter and prevent or slow heating in summer, for example by installing double glazed windows or insulation > Using building control systems which ensure
that heating and cooling systems are only operated at the level required to meet demand in the building, or engaging staff and tenants to avoid energy waste, for example by switching off computers at night.
13 at June 2013, average price including installation across australia from market data (solar choice 2013) was $3,700 whereas it was approximately $15,000 in 2003 (watt 2012)
The rise of solar PV
solar photovoltaic (pV) panels have become extremely popular for australian homes,
incentivised through government programs such as the small scale renewable energy scheme (sres) and feed-in tariffs (which guarantee that solar panel owners will be paid a certain price for excess electricity generated by their systems and fed back to the grid), as well as rising electricity prices. solar panel technology allows the conversion of sunlight into electricity, which is either directly used in the home or exported to the grid to be used by neighbouring homes and businesses.
The technology has rapidly improved over the decade. The average 1.5 kw sized system now costs around a quarter of what a similar system would have cost in 200313.
There have been fewer solar pV installations on commercial buildings, but some companies are predicting strong growth in the future as building owners hedge against rising electricity costs.
introduction of energy efficiency requirements for
non-residential buildings
stringency increase: glazing, insulation, meps for HVac, lighting power density
ban: electricity to heat water & outdoor areas 2010 2003 2005 2006 multi residential: - 3 star minimum - 5 star average multi residential: - 5 star minimum - 6 star average ban: electric resistive hot water heaters single dwelling: provisions introduced (natHers rating) single Homes: 6 star single Homes: 5 star introduction: lighting standards residential buildings commercial buildings
exhibit 1.8: Timeline of energy efficiency measures as added to the Building Code of australia (aBCB 2010, wilkenfeld & associates 2007, lighting, art + science 2009)
standards as a tool to improve energy efficiency in 2010, there were strong improvements in the energy efficiency standards for both residential and commercial buildings. These changes have helped to reduce the amount of heating and cooling required, improve lighting efficiency by reducing lighting power density, and eliminate new electric hot water heaters. states and territories choose whether to adopt the changes, which are set by the australian building codes board (abcb).
The national construction code (ncc) now contains a range of energy efficiency requirements, including requirements relating to the building itself – such as glazing, insulation and draught proofing – as well as major energy using equipment such as heating and cooling systems, water heating and lighting. However, there is some concern that there is insufficient post-construction verification to ensure compliance. research by QUT (Queensland University of Technology) demonstrates that many homes are not performing as expected.
minimum energy performance standards (meps) are mandatory minimum standards that a range of appliances must meet in order to be sold in australia. appliances that are currently covered by meps include refrigerators, motors, water heaters, air-conditioners and a range of lighting products.